We did it last summer - myself, my partner and children who were at the time 12, 9, 6 and 2. We split our flights by adding a stop in Dubai (fortunately my partners niece lives there so this was at minimal extra cost, if we didn’t have this option or have a toddler with us I probably would of gone straight through)
We stayed in Canggu, Ubud, Gili T and Nusa Lembongan.
We took boats to the islands - very rocky but never felt unsafe just not the best for anybody who suffers from travel sickness. We drove round mainland Bali which was admittedly a nightmare - traffic was horrendous around places like Canggu, you need to be prepared to give up days for travel days.
Canggu was ok - probably our least favourite as very busy, nothing really special there unless you have older children to make the most out of the beach clubs and nice restaurants. The kids surfed there which they loved however this is available all over the island.
Ubud was a lot better for us, the kids loved the monkey forrest and my eldest and I did the early morning hike up mount batur which was brilliant as we got a fantastic sunrise.
Gili Trawanagn was our favourite. Plenty of snorkelling and diving and being on the beach and in the ocean which our kids love. We did a boat trip to the other Gili islands as well. We got a lot of activity done throughout the day but felt so relaxed at the same time.
Nusa Lembagon we didn’t really do anything but stay in our resort style hotel and relaxed after our trip before coming home.
I would definitely recommend, our whole family really enjoyed it. It is a one time thing though, I don’t feel the need to go back where as Thailand - I would love to go back in a heart beat and explore more, I feel I have now done all of Bali.